HB
To try to answer your questions, I got re-interested when Michael Burke mentioned it in one of his responses regarding stocks that he liked long. It had historical significance to me, in that I remember it before it got bought up by Williams Company or maybe even Bally had it at one time, and when it was truly a CASH COW, for the boys.
As for gross margins, I take a decline from mid 60% to mid 50% as a cost of doing business in a competitive market. The P/E ratio is the lowest among the game industry people that are making money. Typically the range in the game industry has been anywhere from 25 to 50. Electronic Arts for instance is around 37. So if you just went with a 25 p/e it should be at 36-37.
As for the DD its seems to be as you stated, I did not find anything discouraging or encouraging but the declining price.
The basic story as I know it is, spin off from WMS, good arcade games, good ability to move arcade games into the homes on Sony and Nintendo platforms. Plus with the buy back from GT, it gives them access to the pc market. It has also been stated in other articles that I have read that the management team is very good.
Anyway, I am in today at 17 with the idea that Xmas is just around the summer, and it seems like the pick of the litter. Who knows... Any feedback that you get would be appreciated.
don ryndak
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